Dutch Private Investors Lose ‘Hundreds of Millions’

In his own words, Bernard Madoff drew $50 billion for his pyramid-like investment fund. Both individuals and professional investors across the world have been hit. Dutch individuals might have lost hundreds of millions of euros.

Most Dutch private victims put their money indirectly in Madoff via yield funds like Fairfield Sentry and Kingate Global. These funds have invested in total of $10 billion in Madoff.

Rotterdam

Fairfield Sentry is a fund of the American asset manager Fairfield Greenwich, which has had representation in Rotterdam for years. Asset manager Willem Aalders, who represented Fairfield Greenwich in the Netherlands from 2000 to 2007, claims “to be shocked” by the fraud. He claims not to know how much Dutch private money went into Fairfield Sentry and directs [questions] to Fairfield Greenwich for comment.

Various Dutch asset managers have acquired investors for Fairfield Sentry, among which consultancy firm Bos & Partners. A spokesperson says that about 200 customers are victims and have been scammed billions. Bos & Partners claims not to know how the extent of the losses.

According to sources in the market, the customers of asset manager Wealth Management Partners have been hit by the fraud via Fairfield. Wealth Management Partners does not want to comment.

Informal circuit

Another way in which Dutch individuals could have invested in Madoff was through the Swiss investment fund Auriga, which is represented in the Netherlands by investor Michael Kraland, among others columnist with this newspaper. Kraland claims not to know how much Dutch private estate he has brought to Auriga.

In the United States, thousands of private investors appear to have been scammed. There are many victims in posh neighborhoods in the United States, including Palm Beach in Florida. There, Madoff bought a house in the sixties and is said to have scammed hundreds of neighbors and acquaintances. Madoff drew in many investors informally. Many rich retirees and charitable institutions were allured by the stable revenue and Madoff’s personal approach.